Market Dynamics Steady Price Rise with Stable Demand and Increased Supply Parameters India Hyderabad
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PropIndex | Magicbricks Hyderabad Q4 2019 Residential Market Insights Market Dynamics Steady price rise with stable demand and increased supply Parameters India Hyderabad Residential prices in Hyderabad witnessed annual appreciation of 15.1%, driven by favourable market sentiments, Demand+ +4.0% +0.2% political stability, and improving infrastructure. During Q4 2019, the city recorded a visible rise in active listings by Supply++ +1.5% +4.2% 4.2%, however, demand largely remained stable showing a negligible dip of 0.2%. Price Index+++ +1.2% +3.8% Proximity to IT hubs, widespread connectivity via Outer Ring Road (ORR) and easy access to metro rail network, Notes: + represents the QoQ change in volume of property spurred real estate growth in the northern and western suburbs of the city. These include areas of Gachibowli, searches on Magicbricks website in Q4 2019. Kukatpally, Pragathi Nagar, Nizampet, Miyapur, Kondapur, Bachupally and Manikonda. New fringes of Kompally, ++ represents the QoQ change in volume of active listings on Magicbricks website in Q4 2019. Adibatla, Tellapur and Patancheru, also witnessed significant real estate activity, primarily triggered by their +++ represents the QoQ change in the weighted average location alongside ORR. price at India and city level.. Key Developers based on Ready to Move Price Index active listings "The city observed a 6,000 Aliens Group consistent upward 5,000 INCOR trend in prices, which Aparna Constructions 3.8% f 4,000 rose by from INR s f Lansum Etania Developers p s e p 5,395 per sq. ft. in Q3 c i R r Lodha Group N 3,000 P I . 2019 to INR 5,602 per e g c v i Lanco Hills Technology r A P sq. ft. in Q4 2019." 2,000 e Ramky Estates g a r e Prestige Estates Projects v 1,000 A 5 Year Greenmark Developers 0 Change YoY QoQ PBEL Property Development 4 5 6 7 8 9 0 1 1 1 1 1 1 2 76.2% 15.1% 3.8% 0 0 0 0 0 0 0 2 2 2 2 2 2 2 Note: Notes: The above table represents the top developers by number 1. Ready to move price index represents the weighted average price of completed properties listed in the city on Magicbricks website as on Q4 2019 of active listings on Magicbricks website in Q4 2019 2. The data represents price trend for properties in multistorey and builder floors only Source: Magicbricks Research Source: Magicbricks Research Key Projects based on Under Construction Price Index consumer searches 6,000 "Average price for UC Pragati Elegance Kukatpally 5,000 properties grew by a Aliens Space Gachibowli Phase f healthy 6.5% annually Station 3 s p f 4,000 R s and 2.2% quarterly, Swapna Residency Deepthisri Nagar p N I e e c i c reiterating positive i r r 3,000 P Lakshmi Residency Kothapet P . g e sentiments." v g a A r 2,000 e Lakshmi Nilayam Kondapur v A 1,000 Bhavani Enclave ECIL 5 Year Sumadhura 0 Change YoY QoQ Gachibowli Acropolis 4 5 6 7 8 9 0 1 1 1 1 1 1 2 39.8% 6.5% 2.2% Aparna Serene Kondapur 0 0 0 0 0 0 0 2 2 2 2 2 2 2 NPoater:k Notes: The above table represents the top projects by consumer 1. Under-construction price index represents the weighted average price of under-construction properties listed in the city on Magicbricks website as on Q4 2019 preference on Magicbricks website in Q4 2019 2. The data represents price trend for properties in multistorey and builder floors only Source: Magicbricks Research Source: Magicbricks Research QoQ changes in various price segments Key Trends to Watch Out Price Bracket (INR/sqft) - With most of the searches and active < 4000 4000-5000 5000-6000 > 6000 listings getting concentrated in the "Though, both lower price brackets, the market would 3.7% 3.7% ready-to-move and continue to be driven by affordability 3.2% - Developers to focus more on peripheral 3.0% 2.9% under-construction 2.8% locations like Kompally, Adibatla, properties registered Tellapur and Patancheru, as ORR price growth across all connects them with IT hubs (Gachibowli brackets, RM properties and Hitec City), International Airport, and emerging employment destinations 1.1% outperformed UC (Pocharam and Adibatla) 0.7% properties, rising 2.9% - Pocharam and Adibatla likely to remain to 3.7%. active due to increased activity in IT and manufacturing sector in the city’s RM UC RM UC RM UC RM UC southern periphery. Note: Above table represents the price changes for Ready to move (RM) and Under construction (UC) properties on Magicbricks website in Q4 2019 for various price buckets Source: Magicbricks Research © magicbricks.com Page 1 Demand Supply Analysis Hyderabad Q4 2019 Affordability drove the 2 and 3 BHKs comprising maximum demand and supply residential market DEMAND SUPPLY 47% of the consumer searches were in ‘Less than INR 4,000 per sq. ft.’ segment, followed by Above 3 BHK 1 BHK Above 3 BHK 1 BHK ‘4,000-6,000 per sq. ft.’ bracket, which recorded 3% 6% 5% 2% 37%. Both these segments together contributed 3 BHK a significant 84% of total searches on 35% Magicbricks website. 3 BHK 45% 2 BHK “About 72% of the city’s supply 48% 2 BHK was concentrated in two price 56% brackets – '4,000-6,000 per sqft’ (40%) and ‘Less than 4,000 per Notes: 1. Demand represents property searches on Magicbricks website during Q4 2019, segregated by Bedroom, Hall, Kitchen (BHK) configuration sqft’ (32%). It broadly matches 2. Supply represents active listings on Magicbricks website during Q4 2019, segregated by BHK configuration Source: Magicbricks Research with consumers’ expectations and also emphasize developers’ focus on affordable projects.” (Price in INR per Sqft) Affordable units dominating the market - A moderate demand-supply mismatch is evident in ‘Less than INR 4,000 per sq. ft.’ DEMAND Price buckets in INR per sqft SUPPLY Price buckets in INR per sqft bracket. While demand in this bracket stands at > 8000 > 8000 47%, the corresponding supply is at 32%. 6000-8000 3% 8% 12% < 4000 - Higher price segments of greater than INR 6000-8000 32% 6,000 per sqft, together accounted for 15% of 21% searches, but had nearly double the active < 4000 listings at 29%, indicating passive buyer 47% interest in higher priced properties. - 2 & 3 BHKs constitute more than 90% of both 4000-6000 demand as well as supply. 2 BHK, at 56%, is the 37% most searched BHK configuration followed by 3 4000-6000 BHK at 35%. 40% - Miyapur, Gachibowli and Kukatpally, continued . Notes: to be the top-3 micro-markets owing to 1. Demand represents property searches on Magicbricks website during Q4 2019, segregated by price buckets proximity to key job hubs, easy access to ORR 2. Supply represents active listings on Magicbricks website during Q4 2019, segregated by price buckets and metro rail connectivity. Source: Magicbricks Research Top Micromarkets by consumer Propensity of demand and supply in terms of searches Demand/Supply Demand searches and listings by localities Micro-Market Price Range Q4 Rank Q3 Rank Miyapur 2515 - 5856 1 3 Mallampet Kompally Secunderabad Gachibowli 3646 - 8036 2 2 Chintal Patighanpur Yapral Kukatpally 3763 - 8558 3 1 Suchitra Circle Dammaiguda Mehdipatnam 3229 - 7845 4 8 KPHB Road Safilguda ECIL Note: Tellapur 1. Top micro-markets of the city, ranked by number of searches on Magicbricks in Q4 2019 Kollur Telecom Nagar 2. Price ranges represent the range of avg locality prices in the micromarket in INR per sqft. Source: Magicbricks Research Uppal Mehdipatnam Top Micromarkets by active Medipally listings Upparpally Appa junction Santosh Nagar aMicro-Market Price Range Q4 Rank Q3 Rank Vanasthalipuram Gachibowli 3646 - 8036 1 1 Rajendra Nagar Miyapur 2515 - 5856 2 2 Kukatpally 3763 - 8558 3 3 Nallaganla- 2263 - 6848 4 4 © OpenStreetMap contributors Adibatla Tellapur NSotaeg: ar Highway 1629 - 2669 Note: 1. Top micro-markets of the city, ranked by their active listings on 1. Above map depicts the key localities of the city, with the size of the bubble depicting demand (consumer preference) /supply (active listings) for Magicbricks in Q4 2019 properties in the localities on Magicbricks website in Q4 2019 2. Price ranges represent the range of avg locality prices in the 2. This is an interactive map available on Magicbricks.com under Propindex section. micromarket in INR per sqft. Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard. Source: Magicbricks Research Source: Magicbricks Research © magicbricks.com Page 2 Price Analysis Hyderabad Q4 2019 Q4 2019 Price changes for the city's major localities Kompally 2.2% KPHB 2.3% Nallagandla 1.5% Hitech City 3.6% Banjara Hills 2.0% Alkapur Township 1.3% Attapur 2.1% Appa Junction 1.5% Rajendra Nagar © OpenStreetMap contributors 4.1% Note: Avg Price Change %ge 1. Size of the bubble depicts demand, measured by volume of property searches in localities in Q4 2019 2. Color of the bubble represents price change in Q4 2019, with green color representing price increase and red color price decrease. -7.5% 7.5% 3. This is an interactive map available on Magicbricks.com under Propindex section. -5% -2.5% 0% 2.5% 5% Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard. - Residential prices appreciated in all the localities of Hyderabad, across all price brackets - Localities in northern & western suburbs showed highest QoQ price gains of 4-6%, access to employment hubs, quality social infra, and sound connectivity - Bachupally (5%), Nizampet (4%), Manikonda (6%), Miyapur (5%), Gachibowli (5%) and Kukatpally (4%), witnessed robust price growth during Q4 2019 - Other developing localities of Kompally, Rajendra Nagar, Tellapur and Nallagandla, also grew by a modest 2-4% during the